How Benefits of Payday Loans

Retail Business Woes And Hard Money Loan Seasonal Solutions

17 February 2015

Danielle Lopez

Any plan that successfully improves profit margins by riding seasonal increases in customers could put a troubled retail business back on a proper fiscal track. A solid seasonal strategy may require infusing more liquid cash into the company. What happens when you need to borrow money in order to carry out your plans and no lending institution wants to approve traditional financing?

A business might have its ups and downs during the year. The high seasons of the year could be present a very narrow window for the business to take advantage of. A retail seller might find the winter holiday season delivers the bulk of the year's profits. A health and fitness store likely sees a lot of New Year's resolution pre-summer month's "beach body" customers.

Retail businesses relying on a huge influx of customers during a short period of time surely require having a lot of product in stock. Without a reliable source of funding, procuring the what you have to sell is not going to be possible. This is where the aforementioned hard money real estate loans potentially provide a desirable solution.

Hard Money Equity

Not everyone might consider borrowing a hard money loan against a home because they may not need a significant amount of money to fund a business venture. Hard money loans are viewed as a form of a second mortgage since you can borrow up to 70% of the home's value.

Do not be too quick to dismiss this type of loan.

"Up to 70%" is not the same as "only 70% and no less". If you only need to take a loan equivalent to 20% of the home's value, negotiating with hard money lenders for, essentially, a variant on a home equity loan is a possibility. Just be mindful that the interest rate on a hard money loan is going to be far more than a traditional home equity deal.

Managing the Funds

Reinvesting any money earned via increased flow back into your business not going to be your first priority. Direct all the boosted profits strictly towards paying off the balance of the hard money loan. Failure to pay back the loan could result in losing your home. Once this loan is paid off, then you can safely redirect the accumulated profits back into the retail business.

There are a lot of people out there who have a negative view of payday advances and loans. However, many of the people who think negatively about them have either used them incorrectly or have never been in the position where they have needed to use them.
I have used payday loans when an unexpected expense popped up, like a car repair. They have helped me out extensively. I decided to create this website to discuss the positive aspects of these loans and how to properly use them. If you need money, I hope my website helps to educate you on the benefits of such a loan.